Coffee futures prices are still hovering around at low levels, while the covid-19 epidemic still threatens the consumer markets, and the escalating shipping charges … seem to have poured all over the beans, making agriculture. Coffee growers are more depressed than ever …
Robusta London Tue / 2021 week 52 chart (from 21/12/2020 – 24/12/2020)
For the whole week 52, London market had 2 gaining sessions and 2 decreasing sessions. Robusta coffee futures for delivery in March increased by $ 3, or up 0.22%, to $ 1,383 / ton and for March delivery increased by $ 5, or up 0.36%, to $ 1,393. / ton, slight increases. Trading volume is at medium level.
Similarly, New York market also had 2 gaining sessions and 2 decreasing sessions. Arabica coffee futures for immediate delivery in March increased all 0.7 cents, or 0.56%, to 125.95 cents / lb and futures for May delivery increased all 0.75 cents, ie increased 0, 59%, to 127.85 cents / lb, slight increases. Trading volume is at medium level.
The price of coffee beans in the Central Highlands market increased from 0 to 100 VND, up to fluctuating in the frame of 32,700 – 33,100 VND / kg.
Two-floor coffee prices adjusted to increase due to conflicting information such as forecasts of Brazilian output in the next crop to fall sharply due to drought, while monthly export volume rose to a new record. Certified inventory reports on both exchanges also surged, bouncing off the 20-year record low of Arabica coffees reported in early October and the nearly 2-year low for Robusta reported midway. October.
Notably, Conab Brasil reported an increase of 2.3% in crop production in 2020 to 63.1 million bags, although the market perceived Conab’s report is often 8% lower than the actual figure.
The General Statistics Office of Vietnam estimated that coffee exports in December were only 85,000 tons, down 54.7% from the previous year, the cumulative exports for the whole year 2020 totaled 1,510,000 tons, down 8, 8% compared to the whole year of 2019. At the same time, the General Statistics Office also estimated that the value of coffee export turnover for the whole year 2020 will reach about 2.7 billion USD, down 7.2% compared to the value of turnover. Export of the year 2019.
According to experts, while Brazilian farmers are excited because they have made a relative profit when selling coffee not only thanks to the profitable domestic currency, but also the reasonable sales strategy of the cooperatives. manufacturing. In addition, they are also given credit support from Funcafé so that they do not have to sell coffee immediately to cover investment costs and labor costs to harvest crops in a timely manner. This is also the basis for them to confidently expand the area of crops, especially Conilon Robusta coffee to meet the roaster and instant coffee producers due to the increasing consumption. along with that they have not concealed the idea of usurping the throne of Robusta No. 1 producer in Vietnam.
Through this, we also see the difficulties of coffee farmers in Vietnam today, when the cost of wages for workers and fertilizer materials is increasing. In fact, they have to borrow money from society at high interest rates, because they do not easily access credit sources because agricultural production has almost very low interest rates, even natural disasters leading to low productivity, crop failures, and unforeseen losses. Although sustainable production in the coffee industry has been launched for many years, the results cannot confirm any positive results.
As of Monday, December 21, inventories of Robusta coffee certified by the London floor and tracked allocation have increased by 2,690 tons, or 2.0% compared to a previous commercial week, to register at 136,990. tons (equivalent to 2,283,167 bags, 60 kg bags).
English (giacaphe.com)
